Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Tempura, Inc., is considering two projects. Project A requires an investment of $58,000. Estimated annual receipts for 20 years are $20,000; estimated annual costs are $12,500. An alternative project, B, requires an investment of $77,000, has annual receipts for 20 years of $26,000, and has annual costs of $18,000. Assume both projects have a zero salvage value and that MARR is 16.0 %/year.
What is the present worth of each project?
Project A: $
Project B: $
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